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This chapter reviews alternative model formulations for single level lot-sizing problems. In single level lotsizing problems the manufacturing process is described by a single level product structure, in which products are directly produced from raw materials without intermediate stocking points or subassemblies. Product demands are assessed from customer orders or market forecasts. This situation is often called “independent demand”, since an item’s requirements do not depend upon the lotsizing decisions for another item. Usually, single level lotsizing problems are classified into two categories. The first category consists of the uncapacitated problems, for which it is assumed that production resources are available in abundance, although the cost of setups is nontrivial. The ability to solve these problems has transfer value to more complex problems. The problem may also be sufficiently close to some real manufacturing environments, which have flexible resources (workforce and equipment) and considerable slack.
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